The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-23
Indications that the Shortage Will Reach
the Stupendous Sum of sc. .000, 900, While
the Assets Dwindle in Proportion.
Vice-President Harper and Cashiers
Baldwin and Hopkins Rearrested,
And Required to Give Bonds to Answer
Charges of Conspiracy-The Dereiict Of
ficials To Be Again Arrested To-Day.
A GROWING DEFICIT.
The Losses by the Fidelity Bank Collapse
VIII Reach About $4,000, 900.


VIII Reach About &6,OOO,OO
CINCINNATI, June 22-The morning papers
are full OF matter connected in various ways
with the Fidelity National Banks closing.
Among other things, is the statement that Bank
Examiner Powell, on Monday afternoon, de-
manded a statement from the bank, and re-
ceived one showing q balance on hand OF 81, l6O,-
900 of cash. Then, calling for view OF this
money, he was amazed to be shown q lead pencil
memoranda reading: wiltshire. Eckert g Co..
5000 000 J. w Wiltshire, $46, ,000." and 80 on
through long list. There was no collateral ne
security whatever Mr.. Baldwin and Mr.. Hop
kins were unable to make any explanation, and
Mr. Harper could offer none Even after this.
1t is said the offer to permit the bank to con-
tinue was made il these three men were ex-
PEELED, and new capital brought in. But when
the inquiry was made as to how much would be
required, the answer was million dollars at
least. That staggered the directors. and al
though they still hoped to form a reorganization
it is most probable that the fear that a further
examination would reveal further deficit de-
TERED them. The fact is that Harper concealed
from the directors his connection with the wheat
deal He is said to have admitted yesterday
that he did not go into the wheat deal himself,
but that he honored an overdraft for Wiltshire
that He charges the whole break to the action
of the Chicago Board of Trade making all wheat
regular.
Mr.. Eugene Powell, the bank examiner. is
credited with saying that the condition of the
bank is woeful. He said it was singular how
Harper had deceived everybody about the mat
ter In this connection it may be recalled that
when the wheat panic occurred in Chicago, and
rumors were out of run the Fidelity Bank,
Mr. Harper stated repeatedly to parties asking
for information that he did not know who
in the wheat deal, and he went far as to say
that he did not believe that it was managed at
all in Cincinnati but was conducted from Cali
fornia and Cleveland.
More attachments upon Harper's property
have been made, ard everything he has is now
tied up
AS the examination of the bank proceeds the
cavernous deficit increases. It is now the COM
mon talk the streets that the liabilities of the
bank will reach the stupendous sum of 81, 000,-
900, while the assets dwindle in proportion It
seems foregone conclusion that depositors will
get next to nothing. This is the general talk,
but of course it is unofficial and cannot be veri-
fed until the bank examiner completes his work
and makes his report. 1t is stated to-day that
the memorandum, which is the substitute for
collaterals, shows that Wiltshire used 81. 100 900
of the banks money. and that collaterals for
other loans were hypothecated in New York and
elsewhere. It is the beiefo some that Wiltshire
acted as the agent of Harper in conducting the
wheat deal, and not really a borrower
There is still talk of more arrests
A publication made here that Messrs
Swift & Lyman, attorneys for the Exchange
National Bank of Chicago, were here to push
r. yrv
truth is that the exact amount was s198. 367 So
Last Saturday Mr.. Swift presented certificate
Of deposit ana demanded the money. He was
told the American Exchange did not have that
sum to its credit. He then demanded the bal
ance, whatever it might be, and was told that
payment had been stopped.
In view of the apparent negligence of Presi-
dent Briggs Swift and the other directors, there
is strong talk of causing their arrest, although
it would be hard to find a suffering creditor in
Cincinnati to demand it, One who knows. but
declines to give his name, says that ten days
ago he, with President Swift, went over the
called loan account and found 1t all right. He
says he is certain that Harper had done all this
crooked work within the past ten days or two
weeks, and it could not well be known. He
does not think there is any reflection on Presi-
dent Swift, While there is effect upon the
banks from this failure, there is a marked re-
striction of business. Business mon stand ap-
peled as the glaring features of this great fraud
are contemplated
Bank Examiner Eugene Powell has been ex-
ceedingy busy all day in the attempt to get a
knowledge of the real condition of the bank.
The receiver has not yet undertaken the respon-
sibilities of his Office. Mr.. Powell to-day made
discoveries which justified him. under the advice
Of the district attorney, Burnet. and his assist
ant, Bruce, to cause the arrest a second time
of Messrs. Harper, Baldwin and Hopkins. This
is a new feature of the case. it consists of a
charge Of conspiracy to defraud, by issuing, on
June A. three drafts of $100 900 each in favor Of
Wiltshire, Eckert & Co., upon the Chemical Ma
tional Bank of New York, signed By b. E. Hop
kins assistant cashier. The charge is con-
spiracy to commit offense against the laws of
the United States by unlawfully and willfully
msapplying the funds and credits of banking
institution, In pursuance of which purpose they
issued these drafts.
Another affidavit charges the same persons
with conspiracy to commit an offense against
the United States laws by issuing, on May l3
last, "and causing to be transmitted to the
COMPTROLLER of the Currency a false and fraud
ulent report of said Fidelity National Bank. at
the close of business. May 13, 1887, in this: that
the SaiQ Danh Qlu Dob nave III iIS possession, as
stated in said report, $500, 900 in legal-tender
notes and 1926. $40 in silver certificates. they
knowing these amounts not there and
making the statement in pursuit of a conspiracy
to deceive certain officers of said national bank.
and the agent appointed to examine the affairs
of said bank"
The arrest made upon these afidavits,
which were to by Mr.. Powell, late this
afternoon. The prisoners were taken together
before United States Commissioner Hooper,
where they waived examination and were bound
over to appear at the October term of court.
Mr. Harper gave bond in the sum of s15, 900
and the other two in So 900 each Mr.. Hopkins
seemed much detected. and said that to the
last charge he knew nothing at all about the
making of tho report, as it did not come under
his share of the work. He said he could easily
show, when the proper time came. that what
ever was wrong in the bank he was not RESPONSE